Many organisations exist to protect the interests of the citizens in Singapore. Among them is the Moneylenders Credit Bureau (MLCB).
The MLCB was set up in Mar 2016 by the Ministry of Law. It aims to bring order to the moneylending industry in Singapore by bringing borrowers and licensed money lenders together through its database. But what is money lender credit bureau?
This database contains records of their interactions, which it presents as credit reports or loan information reports. These reports are critical to borrowers and lenders because they determine the course of their interaction moving forward.
If a borrower has been faithful in his or her dealings with a money lender, the lender may trust the borrower to repay a new loan.
Meanwhile, borrowers can use these reports to manage their debts and secure their eligibility for credit in future when the need arises.
Read further to learn more about what is money lender credit bureau, the MLCB report it generates, and how to manage your finances to maintain your credit eligibility.
What Is The MLCB?
The MLCB is the central repository of all data collected from licensed money lenders. It documents all their interactions with borrowers regarding the issuing of credit.
The information helps lenders make better decisions when considering loan applications, and also enables borrowers to manage their loans and finances more effectively.
Note that the MLCB only collects and stores information about borrowers’ involvement with licensed money lenders in Singapore. It does not touch on any loans held with banks or bank deposits. The MLCB is also not privy to the decisions money lenders make.
Each borrower’s information is put together in a report called an MLCB loan information report or money lenders report. This comprehensive document becomes the foundation of all borrowing and lending decisions involving borrowers and licensed money lenders in Singapore.
What Is Included In A Loan Information Report?
A loan information report, also called an MLCB report, comprises a complete summary of your borrowing and repayment behaviour with different money lenders in Singapore.
It contains the following information:
- Personal details such as your full name and NRIC number. It does not show your telephone number or contact address.
- It also includes the loan amount or amount of credit given to you by licensed money lenders in Singapore. It shows all secured and unsecured loans granted to you, and the outstanding amount you have yet to pay. This amount is updated in real time and attests to your borrowing and payment capacity.
- Employment information such as your employment type and the income you receive from it. It will also show your average monthly and annual income.
- The repayment status section shows your loan payment behaviour for the past 12 months. Money lenders look at this to measure your ability and commitment to paying your debts. If you have faithfully made your payments on time, they will likely give you the money you need.
- Closed or terminated credit accounts. This refers to any accounts that have been terminated or closed dated three years ago from the time the report is generated.
- Bankruptcy records that detail whether you filed for bankruptcy in the past five years. Once outstanding loans are paid in full, the records should be cancelled and taken off your report.
How Often Is It Updated?
Your loan information report automatically updates each time Credit Bureau Singapore receives new data. The database refreshes daily, weekly, or monthly, depending on the money lender you’re dealing with and the terms of the loan you acquired.
Who Can Access The Report?
There are only four authorised parties that can access your credit report:
- Licensed money lenders
- The Registry of Moneylenders
- The Ministry of Law
The Registry of Moneylenders and the Ministry of Law can access the report on their servers. Licensed money lenders can access it whenever a borrower applies for a loan and may continue to monitor the report for as long as a borrower holds a loan with them.
Lastly, borrowers have a right to access their credit reports any time they like, although they have to pay a small fee.
No other party is authorised to access the credit report aside from these four parties.
How Can You Improve Your Credit Record?
Improve your credit standing by doing the following:
- Limit your borrowing to a loan amount you can confidently pay through timely payments – any delayed or missed payments are reflected on the loan information report
- Do not seek out multiple loans from money lenders simultaneously for the same need
- Avoid having to pay too many loans at a time
- Repay all your loans, including the defaulted ones, to improve your credit score
- Do not default on any loan
How And When To Check The Report
Borrowers are encouraged to examine their credit reports at least once every year. Doing so is crucial because you can check whether the information contained therein is correct and ascertain that your identity has not been stolen.
Here’s how to access your money lender report:
- Go to the MLCB website and click ‘Sign Up’ to open an account. If you already have Singpass, click ‘Sign In’.
- Next, fill in all the personal information you are asked to enter.
- After entering all the information needed, choose the type of credit report you’re looking to access.
- The site will direct you to the specific agency based on the type of report you choose. The agency will ask you to answer some additional questions to confirm your identity. Examples of details you will be asked are your credit card number, phone number, and county of residence. After verifying your identity, you can now access the report.
On your first request, you will not have to pay, but in subsequent requests, you will be asked to pay a small fee.
Alternatively, you can click here to buy a copy of your loan information report from the Moneylenders Credit Bureau.
How Does The Report Affect You As A Borrower?
The status of your credit report affects your borrowing capacity because the MLCB caps the loans that a borrower can have at a time. This is especially important because some people approach several money lenders whenever they have a financial need.
If the lenders were to receive several of such requests from one borrower without the transparency the MCLB brings, the results can be disastrous. It may even cause irrevocable damage to the borrower’s financial situation.
So the MLCB exists to make borrowers more financially cautious and ensure that they only borrow within their means. Through the report, borrowers can also keep track of loans that are already disbursed.
Another way the report affects you is that it affects your eligibility as a borrower. Whenever lenders consider offering you a loan, they look at your credit report to assess the risks your case presents if they were to offer you the loan.
If they feel that you are likely to default, the lenders may dismiss your request. But if you always make timely payments, the report will reflect positively on you. It may even raise your borrowing limit.
The MLCB Report Protects Borrowers
Now that you know what is money lender credit bureau, you can see why your credit report matters.
While it determines your eligibility for credit, a reputable licensed money lender like Credit 21 may still help you get a loan even if your report doesn’t look good.
Credit 21 exists to help Singaporeans resolve their financial needs with quick cash. We are a top-tier licensed money lender with experienced professionals.
We can help you assess your financial status and get a loan that you can repay easily.
Visit Credit 21 at 10 Anson Road, #01-07 International Plaza, Singapore 079903. You may also contact us at +65 6221 1811 or apply for a loan now. You’ll be sure to get something that suits your financial needs.